Advice Please On Silver And Gold For Investing

Sunny in NC, yes my basic belief is that gold and silver will inevitably be pushed higher over the years, regardless of what may happen in the short to medium term. As some have already stated China has gone from a net exporter of gold and silver to a net importer. I have noticed many other news stories recently, from reputable outlets as opposed to conspiracy websites and the like, stating the demand for gold and silver is growing exponentially in developing countries. I saw one the other day where the Indian Post Office has begun selling gold coins, and can't keep them in stock, especially for the younger generations. I think this is because so many are raising their standard of living, and still remember what it's like to be on the streets or in the slums. They want to protect their wealth, what little of it they have, and know that gold represents a safe storage of it.

I was in Dubai five years ago and remember buying jewelery at the gold souk, and I bought some very nice pieces despite not making much money at the time. Gold was around $600 then. I just have a very hard time believing if I go back in ten or twenty years, gold will be what is today, or less. I can see it being $2000, or $2500 easy. Maybe $3000 to $4000 by then. And people will take it as a given that gold is worth that much, and still be willing to pay.

both are good investments as long as you know when to sell............

From the replies to the OP, it is clear that there are many ways that one might invest in PM bullion. Given that, we all tend to find our way into the ways that appeal specifically to us as individuals. For me, that is to start with some silver coins. I know that the 90% so-called junk sliver coins are the best bang for the buck with the lowest premium. I appreciate that and will be buying some soon. That said, I started my micro-hoard with 20 1-oz. ASEs. Yeah, I probably paid a little more for them than I would have for either junk silver coins or silver rounds, but, man... they ARE gorgeous! I have a couple that I saved from years past. I love holding them and just looking at them. For me, that makes them worth a little extra.

Also, I tend to look at both silver and gold as long-term holdings and as insurance. I'm one of those old guys, you see, and I still remember those days when I could trade a silver certificate bill for a $1 silver coin and vice versa at any bank. Back in those days, a paper dollar really was a dollar and not about 2.3 cents like it is today. I can't see this trend reversing itself anytime soon, so no matter when one buys into some PMs, it's a good time to buy. Yeah, there are best times to buy but timing the market is not my thing. Slowing acquiring more ounces of silver and, eventually, gold is!

Yeah, Silverhawk74, that is the way that I look at it too. By buying even small PM amounts regularly, the hoard WILL grow and it will be purchased at various prices. This will result in an average price that is less than the top and more than the bottom price paid. This is just like "dollar cost averaging" into a stock position.

I'm not into the numismatic end of collecting but can understand why someone would be. I can enjoy looking at a fine collection as much as the next guy but I'm just in it for the bullion side of things... and that's OK. Coin and PM collecting has a lot to offer and there are many ways to work it. For you folks who are into the numismatic end of things, hey, at least I am not bidding against you for that next goodie that your collection needs!

Sunny - I am in the same boat as you in terms of $ budget - along those lines. I put the majority in silver - but still wanted some certified Gold pieces to own...

Given the structure of ETFs, could you please clarify how one manipulates the price of the ETF without similarly manipulating the price of the underlying?

thanks for the link stewart. Has there been an update on the lawsuits that have been filed?